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UK in the Bloc: CPTPP expansion benefits all parties
With the UK’s new access to CPTPP, the available Vietnam-UK free trade agreement, and the country’s strong fundamentals, Vietnam continues to stand out in the region, offering more preferential trade opportunities for its partners across the globe, write Ian Tandy, co-head of global trade solutions, Asia Pacific at HSBC and Surajit Rakshit, head of global trade solutions at HSBC Vietnam.
Ian Tandy, co-head of global trade solutions, Asia Pacific at HSBC. Photo courtesy of HSBC.
The UK’s accession to one of the world’s biggest free trade agreements can unlock further growth along the Asia-Pacific corridor including Vietnam.
One of the world’s biggest – certainly the most modern – free trade agreements has just gained its newest member: the United Kingdom formally joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15, 2024.
The accession of the UK will take CPTPP’s members to 12, with the new entrant joining Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. With the UK in the bloc, it will account for about 15% of global GDP.
Having joined trade finance activities in both the UK and in Asia-Pacific, we have seen firsthand the scale of potential for increased trade and investment between the two markets.
The UK is a highly attractive trading partner for many of the other members – Asian members in particular will welcome the improved access to the world’s sixth-largest economy and its deep financial markets. And for UK businesses there are exciting potential benefits too, not least improved access to the region’s expanding manufacturing industries and its increasingly affluent and digitally-connected consumers.
Taken as a whole, the agreement marks a critical element in the UK’s relationship with the Asia-Pacific region, where more than half of global growth already originates.
Surajit Rakshit, head of global trade solutions at HSBC Vietnam. Photo courtesy of HSBC.
A future-facing free trade pact
Older trade agreements have often had to grapple with the demands of modern economies, such as the shift in relative importance of services versus goods, and the particular dynamics of digital trade. But one big advantage of CPTPP is that it is designed precisely with these in mind.
That matters for the UK especially, given that the country is the world’s second-largest exporter of services. And digital trade – where businesses in the UK export services remotely to CPTPP countries – is also a substantial activity.
The CPTPP agreement, with its more manageable requirements in matters such as where data can reside, allows information to flow more easily between members.
It also points to significant growth potential: none of the CPTPP members currently ranks in the top 10 for UK services exports. Singapore – which acts as a gateway to ASEAN for many firms – stands out as one of the fastest-growing services markets for the UK, having grown by 147% from 2013 to 2023.
A boost from the CPTPP membership points to opportunities for a range of businesses, from financial services to logistics, as well the burgeoning ‘new economy’.
Goods still matter, of course. When CPTPP comes in force for the UK, the country’s exports of goods to member nations will be practically all tariff-free.
The UK government has assessed that the long-term boost to UK exports to CPTPP countries could total £2.6 billion. Many UK firms that lean into ‘Brand Britain’ – covering everything from cars and machinery to pottery and Scottish whisky – stand to benefit from improved access to CPTPP markets.
On the other side, the UK is also an important export market for Asian countries with a wide range of products such as fruits, seafood, rice, rubber, metals etc. In 2023, while Vietnam’s exports to other markets witnessed a drop, its exports to the UK increased by 11%. According to the data of Vietnam’s General Department of Customs, in 11 months of 2024, Vietnam’s exports to the UK continues to grow by 19,5% compared to last year.
The accession of the UK will take CPTPP’s members to 12, with the new entrant joining Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Illustration courtesy of the Vietnamese government’s news portal.
Simplifying supply chains
Entering new markets can often be challenging, and one of the most useful aspects of CPTPP is how its provisions take into consideration the concerns and challenges faced by small and medium-sized enterprises (SMEs) in its member economies.
For larger businesses, one of the biggest benefits will be in relation to international supply chains. The pandemic and geopolitical uncertainties have demonstrated the need for ever-greater resilience when it comes to such links, and CPTPP will play an important role in smoothing the way for new improvements.
A big reason for that is the modern approach taken to rules-of-origin provisions in CPTPP, which allow contributions from all members to be aggrated. In other words, if parts of a product are made in five different CPTPP countries, thoseeg parts can collectively form the mandated CPTPP proportion of the final product.
It’s been pleasing to see that international firms’ intention to make use of the CPTPP is on the rise – up over 10% year-on-year according to the HSBC Global Connections survey in 2023. While that’s encouraging, there’s more to do for banks like HSBC, in partnership with policymakers, to explain in detail how specific provisions in the agreement can support business growth, especially for SMEs.
Vietnam in particular has benefitted from the implementation of CPTPP. Vietnamese enterprises now have more opportunities to access high-quality markets such as Japan, Canada, Australia, and now the UK.
Statistics from the General Department of Customs show that the total import-export turnover to CPTPP markets in the Americas soared by 56.3%, from $8.7 billion in 2018 to $13.6 billion in 2023.
In the same period, Vietnam’s exports to these markets nearly doubled, from $6.3 billion to $11.7 billion. Vietnam’s trade surplus in these markets also nearly tripled from $3.9 billion to $11.01 billion.
Into 2025, with the UK’s new access to CPTPP, as well as the available Vietnam-UK free trade agreement, thanks to all strong fundamentals that the country owns, Vietnam continues to stand out in the region, offering more preferential trade opportunities for its partners across the globe.
Now in its sixth year, the CPTPP is expanding to include the world’s sixth-biggest economy. The benefits all round could be set to multiply.
The event presented key topics including international standards and technological solutions for carbon emissions’ management, environmental, social, and governance policy evaluation based on global standards, and the application of technology in optimising operational costs.
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| ACCA event highlights technology’s role in sustainability practices |
The conference served as a platform for future-oriented businesses to share their successes and challenges while fostering collaboration among those committed to sustainability.
During the conference, Ren Varma, ACCA’s head of Mainland Southeast Asia, delivered in-depth insights into ACCA’s role in supporting businesses in building sustainable development capabilities.
Citing 2024 trade figures, Varma noted that Vietnam’s import-export turnover maintained unprecedented levels over the past 40 years, supported by the enforcement of over 17 trade agreements.
Vietnam-EU trade exceeded $67 billion, with numerous domestic enterprises integrating into European and global supply chains.
“Implementing sustainability reporting is imperative for Vietnamese firms participating in global supply chains to comply with Europe’s mandatory sustainability disclosure regulations. The key challenge is how businesses can effectively implement sustainability reporting with existing resources while meeting international standards,” said Varma.
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| Ren Varma, head of Mainland Southeast Asia, ACCA. Photo: ACCA Vietnam |
Representatives from various other organisations, such as VACPA, FPT, Unilever, HDBank, PwC, and the University of Economics in Ho Chi Minh City shared their experiences in leveraging technology for sustainability.
These real-world case studies enabled participants to gain practical insights into how best to apply technology to sustainable management, while understanding the essential competencies required for effective implementation.
At the event, experts reaffirmed their commitment to enhancing capabilities and professional expertise in achieving national sustainable development goals and the target of Net-Zero by 2050.
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| Photo: ACCA Vietnam |
ACCA pledged its continued support by launching the Professional Diploma in Sustainability (ProDipSust) across more than 180 countries, including Vietnam. This initiative aims to equip professionals with the necessary expertise to implement sustainable business practices.
ProDipSust not only provides in-depth knowledge on sustainability but also guides businesses on practical applications, from understanding international frameworks and regulations to strategic management, sustainability reporting, and assurance.
Recognised as a globally standardised knowledge framework, this diploma plays a crucial role in strengthening corporate sustainability governance, ensuring transparency, and complying with international standards.
Beyond offering training programmes, ACCA actively collaborates with leading organisations to drive sustainable development initiatives.
Beyond offering training activities, ACCA collaborates with major organisations to drive sustainability initiatives. In this seminar, ACCA Vietnam, in partnership with VACPA and PwC Vietnam, established a highly practical forum to help Vietnamese firms align with international standards and devise effective sustainability strategies.
Ren Varma underscored the critical role of finance and accounting professionals in advancing sustainable development, saying, “Financial expertise is not just about financial reporting, it plays a fundamental role in shaping sustainable strategies. Finance professionals are responsible for integrating sustainability initiatives into business models, accurately measuring their impact, and transparently communicating them to stakeholders. ACCA’s certification serves as a vital tool for businesses and individuals to enhance their expertise in this field.”
“With a strong commitment to fostering sustainability competencies, ACCA will continue to support businesses and financial professionals on their journey towards a responsible and sustainable economy,” he added.
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Ho Chi Minh City has announced plans to develop infrastructure along the Saigon River towards the East Sea. Photo: Le Toan |
Talking with VIR on March 4, Doan Manh Thang, director of water and resilience at Royal HaskoningDHV Vietnam, said the Saigon River has great potential but has not been exploited properly. The plan will map out a waterway from Cu Chi to the city centre.
Royal HaskoningDHV is the leader of a consortium that includes Boston Consulting Group, Roland Berger, the Ministry of Construction, and ACUD Consult that has been tasked with developing this plan which was approved by the prime minister on December 31, 2024.
The plan aims to develop Ho Chi Minh City into a hub of high-quality human resources, modern services, and advanced industries, pioneering in the green economy, the digital economy, and a digital society. It will also maintain its position as Vietnam’s leading centre for economy, finance, commerce, culture, education, and science and technology, with deep international integration.
“We can build service areas such as marinas and commercial centres along the river, alongside green spaces,” Thang said.
Moreover, a metro line from the city centre to Can Gio Island could act as the driving force for the city to reach double-digit growth, he confirmed.
Can Gio Port, meanwhile, is strategically located opposite Cai Mep-Thi Vai Port – the largest international port in Vietnam. However, it is only operating at 50 per cent capacity. The government has decided to upgrade Can Gio Port to become an international transit centre, with an estimated investment of $4 billion. The port is expected to handle 10 per cent of Vietnam’s imports and exports, of which 90 per cent will be international transshipment.
According to Phan Van Mai, newly appointed Chairman of the National Assembly’s Economic and Financial Committee and former Chairman of Ho Chi Minh City People’s Committee, the city will strive for regional GDP growth of 8.5-9.0 per year until 2030.
“To effectively implement the plan, the city needs to mobilise resources, attract investment, develop human resources, and apply science and technology, innovation, digital transformation, and environmental protection,” Mai said.
Meanwhile, Thang said that the biggest bottleneck in implementing this plan is the lack of mechanisms to entice capital.
“Public investment is the seed capital to stimulate investment from other economic sectors. In fact, many investors are interested, but the mechanisms for investment must be more detailed,” he said.
A resolution issued in June 2023 grants special mechanisms for the development of Ho Chi Minh City. Meanwhile, in February 2025, the National Assembly issued another resolution for Hanoi and Ho Chi Minh City to invest and develop metro systems. On that basis, Ho Chi Minh City will invest simultaneously and complete seven routes with a total length of 355km within 10 years.
“Initially, the state will have to spend money because it will be difficult to attract investment, but when it starts to take shape, private investors will be looking to spend money to build infrastructure. This would remove the bottleneck, but still requires appropriate policies,” Thang said.
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| Thu Thiem New Urban Area – the new financial and economic hub of Ho Chi Minh City. Photo: Le Toan |
In total, 11 plots covering 9.2 hectares in the Number 1 Functional Area will be used for the project in Thu Duc city.
The location was reported to the local Department of Telecommunications on March 11 to set up a plan to develop telecommunications and digital infrastructure for the centre.
Thu Thiem New Urban Area was approved in 1996 covering 930 hectares on the east bank of the Saigon River and opposite District 1. When completed, the area will have a population of 200,000 people.
The area will be divided into a central core, a northern residential area, a residential area along Mai Chi Tho Avenue, an eastern residential area, and a southern zone.
On January 4, Prime Minister Pham Minh Chinh chaired a conference to announce an action plan to implement a regional and international financial centre in Ho Chi Minh City.
At the conference, PM Chinh said that Ho Chi Minh City is located at the head of Southeast Asia, making it convenient for trade and financial connections with major markets such as China, Japan, South Korea, and ASEAN. Building a financial centre there will help reduce costs and transaction times for traders.
To accelerate the project, early this year, Ho Chi Minh City established a steering committee for the construction and development of the centre with 29 members. The establishment of the international financial centre is expected to create a foundation for the future growth of Ho Chi Minh City. This is also an opportunity for the city to attract international investors and increase foreign investment in various sectors.
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